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Trivago moves to reduce advertising spend as losses mount

Trivago says it’s focusing on improved profitability and has already begun reducing advertising spend as part of its strategy going forward.

Total revenue decreased 21% to €235 million in the second quarter compared to the same period in 2017. Meanwhile, total revenue for the six months ending June 30 was down 13% to €494 million compared to the same six-month period in 2017.

The metasearch player experienced a net loss of €20.7 million for the quarter compared to the net loss of €3.4 million for the same period in 2017. For the first six months of 2018, net loss was reported at €42.5 million, compared to a net income of €4.3 million for the same period in 2017.

Qualified referrals for the quarter were down 10% to 177 million, with revenue per qualified referral down from €1.5 to €1.3.

Trivago put the losses down to the same challenges suffered in the first quarter, including the changes in strategies of its main advertisers - Expedia Group and Booking Holdings, as well as, foreign exchange rate fluctuations.

Adjusted EBITDA for the quarter represented a loss of €17.7 million compared to a positive EBITDA of €3.2 million over the same period in 2017.